If there's one thing that new entrepreneurs struggle with, it's the art of setting the correct price for their product or service.
And for us women, we can sometimes question ourselves and struggle with our personal value proposition in a way that men simply don't.
To perfect your 'correct' price, you need to blend gut instinct and awareness with a little science and art thrown in. These tips will help you to get the delicate pricing balance right in your business and set you up for success.
Why you need to get pricing right.
Why is it so important to get pricing right? Quite simply, the right pricing structure will see you achieve the profit margins you dream of, and help you to build a thriving business. Set prices too high however, and you fail to win business. Set prices too low and customers may question the quality - or simply leave you with no margin.
It is vital that you do not cheapen or devalue your quality service or product - even when your palms are sweating and you are feeling the pressure of closing a sale!
And girls, don't even be tempted by a price drop. Good planning will help to avoid this situation long before you're engaging with your client.
You need to know two things.
Firstly, the psychology behind your situation. Understand your customer, and yourself. Whilst authenticity and individuality will help you to stand out in business, this is one occasion where it makes sense to know what others are doing successfully, and to emulate it.
Unless your product and service are unique, you are working in a shared competitive space. So, find out what others are charging in your market and then review your own offer.
Use your self-awareness and gut instinct to price accordingly. Don't be the cheapest. Look for what differentiates your offer, and what add values to it. Remember, if you go in at the bottom price, you have nowhere to go.
Secondly, you need to look at your clients and understand their needs, and define them as tightly as possible to understand what drives them. For example, time starved, working parents are likely to spend money to benefit from convenience.
A more diverse customer market will require a pricing range and a little more creativity to meet different needs.
As you use this information, through reflection and analysis you will be able to pull together a solid pricing structure that makes sense for your business. Remember, you can experiment and test your assumptions - nothing is set in stone.
Nadia Finer is a business coach for solo entrepreneurs who want to GO BIG IN BUSINESS, even if they feel little. Join the FREE Pump up your profit challenge and discover the simple sales and pricing strategies Nadia uses to help clients go from pennies to $5k months.